Merchant Cash Advances Stimulate Job Growth

The economy continues to struggle and one of the main reasons for this is that banks continue to refuse small businesses access to capital. Small businesses in America are one of the biggest contributors to job growth; a small note inconspicuously pointed out by Chairman of the Federal Reserve Ben Bernanke. In a recent meeting the Chairman pointed out that, “the inability…to get credit to expand a small business is one of the reasons why job creation has been relatively slow.” The conundrum here is that many economists agree with this statistic yet banks are not willing to provide small business loans to individuals with less than perfect credit.

A solution that would certainly stimulate the job market and fuel the economy is informing small business owners about how to receive a merchant cash advance. This alternative business loan is offered by private lenders to businesses owners that suffer from bad credit. A merchant cash advance is an exchange where the owner of a business sells a small portion of their future sales and receives a bulk payment in advance of those receivables.

One of the main reasons that this type of business financing is not as popular as it should be is because the public is not aware the product exists. Most business owners are accustomed to the idea that you go to a bank for a business loan and if they deny you that’s it. However, the truth is that there are many private lenders willing to take a chance on small businesses and they are very flexible when it comes to bad credit applicants. Cash Advanced to businesses would be a sure way to contribute to their expansion and ultimately energize job growth.

Offering knowledge to the public about a merchant cash advance is one sure way to fuel the economy and job growth. If banks are not willing to fulfill their obligation to stimulate the economy there are many merchant cash advance companies willing to risk working capital on good companies. Informing the public about the existence of merchant cash advances is some good advice the Chairman should consider in his next meeting if he wants to help solve the problem of job creation.

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